Petrichor Energy Inc.
TSX VENTURE : PTP
FRANKFURT : YQN

March 17, 2011 18:18 ET

Petrichor Announces Negotiation of $500,000 Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Petrichor Energy Inc. (TSX VENTURE:PTP)(FRANKFURT:YQN) (the "Company" or "PTP") announces that it has negotiated, subject to acceptance by the Exchange, a private placement for gross proceeds of $500,000. These funds will be raised by the Company issuing a total of 2,000,000 Units (the "Units") at a price of $0.25 per Unit, each Unit consisting of one common share and one share purchase warrant, each warrant entitling the holder thereof to purchase one additional common share, exercisable for a period of two years from the date of issuance at a price of $0.35 per share. Proceeds raised from the private placement will be used for general working capital purposes.

Two officers of the Company, together with two associates of those officers, have directly or indirectly subscribed for a total of 380,000 Units, and upon closing of this private placement, those related parties will therefore acquire an additional 380,000 shares in the capital stock of the Company which will increase their pro rata shareholdings in the Company (the "Related Party Transaction"). All of the independent directors of the Company, acting in good faith, have determined that the fair market value of the securities being issued and the consideration paid is reasonable and, with the value of the Related Party Transaction being less than 25% of the Company's market capitalization, is exempt from the formal valuation and minority shareholder approval requirements of the Ontario Securities Commission's Rule 61-501.

ON BEHALF OF THE BOARD

"Joe DeVries"

Joe DeVries, Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Petrichor Energy Inc.
    Joe DeVries
    Chief Executive Officer
    (604) 718-2800
    (604) 718-2808 (FAX)